1 You have the following annual data for an economy: Year Real GDP Consumer price Labour force Employment (2007 $) index (2007=100) (000) (000) 2012 1,282 109.1 17.593 16.537 2013 1,307 111.9 17.857 16.696 2014 1,288 138.9 18.125 16.856

2.What was the rate of growth of real GDP from 2012 to 2013, and 2013 to 2014?

3. What was the rate of inflation in 2013 and in 2014?

4) What were the rates of growth of the labour force and employment from 2012 to 2013, and 2013 to 2014?

5.What happened to the unemployment rate between 2012 and 2013, and between 2013 and 2014?

6.Suppose the economy represented by the table in number 1 above had a population of 27.885 thousand in 2014.

7. What were the participation and employment rates in the economy in that year?

8. Suppose a mild recession in that year discouraged some unemployed workers and they stop looking for work. As a result the participation rate fell to 64.5 per cent. How would the unemployment rate and the employment rate be affected? Why?

9.The economy has two main industries. One produces services and the other produces goods. The services industries produce services for households and businesses with a total market value of $10,000. The goods industries produce goods for the use of both households and businesses with a total market value of $5,000. The service industries spend $1,000 on computers and paper and envelopes supplied by the goods industries. The goods industries spend $1,000 to buy financial, insurance, advertising and custodial services supplied by the service industries.

Explain how you measure nominal GDP in this economy and the value of output you find?

10.Suppose GDP is $2,000, consumption expenditure is $1,700, government expenditure is $50, and net exports are $40.

11. What is business investment expenditure?

12.If exports are $350, what are imports?

13.In this example, net exports are positive. Could they be negative?r